Council to mull paying for parks with CIDC funds

A proposal that calls for the Conroe Industrial Development Corporation to fund all future parks projects could save the city millions in general fund revenues and allow for property tax rate cuts.

Conroe City Council members listened to the plan during Wednesday’s workshop and will vote on it at their meeting today, which starts at 6:30 p.m. in council chambers at City Hall, located at 300 W. Davis St.

The standard way to finance parks projects is by issuing bonds that amortize over 20 years, City Administrator Jerry McGuire told council members.

“Phases four and five at Barton Park are projected to cost around $4 million,” he said. “You can see the potential savings to the general fund by not having to issue bonds. … as long as 4B funds are available.”

The CIDC is authorized by the state’s Development Corporation Act of 1979 to spend 4B sales tax revenues for public parks, according to the proposed resolution. Salaries for city parks employees would continue to be paid from general fund revenues.

By calculating the current debt load for parks projects under the city’s Capital Improvement Program and projecting it out through 2011, city Finance Director Steve Williams said the city can save $26 million to $27 million in principal and interest, amortized over 20 years, by using CIDC 4B funds.

“In terms of the tax rate, it would certainly allow us to lower it by at least a few cents,” he said. “The cash flow model for the CIDC board shows there’s considerably more than this ($26 million to $27 million).”

The most recent CIDC monthly treasurer’s report shows a total projected CIDC fund balance in 2030 of more than $100 million. The projected fund balance for the 2008-09 fiscal year is $10.9 million.

Councilman Jerry Streater asked why a resolution is needed.

“Why not take each one as they come?” he asked. “I have no problem with spending CIDC funds on parks, but I don’t understand the need to do a resolution.”

Mayor Webb Melder said each park project still would come before the council for approval, and then council members would determine how to pay for it.

“The resolution helps reallocate funds,” he said. “(Using CIDC funds for) any new parks project would all be based on if the money is there. “

Trash pickup re-routing: Council members heard a presentation by Tirso Martinez, Conroe site manager for Allied Waste, about a proposed change in some city trash pickup routes.

If council members approve the change, which would be effective Nov. 1, residents living along League Line Road would have pickup days changed from Tuesday and Friday to Monday and Thursday. Residents along Airport Road would see a change from Monday and Thursday to Tuesday and Friday.

Residents living south of Silverdale Road, including those in Stewart’s Forest, would have their pickup days changed from Tuesday and Friday to Wednesday and Saturday.

“We want to make sure (pickup) days are even so customers are served and we can accommodate growth in the city,” Martinez said.

Allied Waste would notify customers who would be affected via two separate postcard mailings, Martinez said, and the city also would notify residents when they receive their water bill.

Conroe city council

The Conroe City Council will have a regular meeting at 6:30 p.m. today in council chambers at City Hall, located at 300 W. Davis St.